Summary
- Meme stock enthusiasts on Reddit are rallying behind Wendy's, a fast-food chain.
- The company's shares surged over 25% on Wednesday following a wave of posts aimed at "saving" the brand.
- Despite this daily rise, WEN shares have seen a 66% decrease over the past five years.
As Bitcoin struggles on Wednesday, retail investors are focusing their attention on Wendy’s (WEN), which saw its stock price climb nearly 26%.
After hitting a low of $6.08 per share earlier in the week, Wendy’s shares closed Wednesday at $7.86, marking a significant daily increase of over 25%. The stock even peaked at $8.89 during the day, and it continues to rise in after-hours trading.
A Reddit post titled “We need to save Wendy’s” has received more than 18,000 upvotes on the r/WallStreetBets forum, known for its role in the GameStop stock phenomenon, which was driven by Keith Gill, also known as RoaringKitty.
The post emphasizes the company's severe decline in stock price over the years, stating, “We need to save Wendy’s before it’s too late. If this company goes bankrupt, we’ll all be out of a job!”
In addition to the price surge, trading activity has skyrocketed, with over 203 million shares exchanged before the market closed on Wednesday, compared to an average volume of less than 10 million shares, representing a staggering increase of 1,970%.
However, despite the Wednesday gains, Wendy's stock is still down 36% over the past year and has plummeted 66% over the last five years, according to Yahoo Finance.
Alongside the main post, numerous individual posts showcasing Wendy’s stock purchases and long options trades have emerged on r/WallStreetBets, indicating a bullish sentiment.
This surge in interest has propelled Wendy's to the top trending position on StockTwits, a social media platform that monitors asset-related discussions and sentiment.
In a related trend, crypto investors are also trying to benefit from this situation. A meme coin based on Wendy's, created on the token launchpad Pump.fun and not affiliated with the actual Wendy’s Company, has seen its market cap soar to $439,000 on Solana within a day, reflecting a gain of over 1,450%.
A comment pinned to the popular Reddit post indicates that the original poster has been promoting this same token, which starts with a Solana address of “Eav7v,” in their biography.
This forum has previously influenced stock movements in traditional markets, significantly affecting shares of companies like AMC (AMC), Blackberry (BB), and Bed Bath & Beyond (BBY).